Enter the value of next year’s dividends per share, the rate of return, and the growth rate expected for the dividends to determine the stock price.

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## Share Price Formula

The following formula is used to calculate a share price.

SP = D / (rr/100 - g/100)

- Where SP is the share price ($)
- D is the dividends per share ($)
- rr is the return rate (%)
- g is the growth rate (%)

## Share Price Definition

A share price is defined as the total cost of 1 share of a given stock or security.

## Share Price Example

How to calculate share price?

**First, determine the dividends per share.**This will be the dividends per share of the upcoming year.

**Next, determine the return rate.**Determine the average return rate of equity of that company.

**Next, determine the growth rate of the dividend.**Calculate the growth rate of the dividend year over year.

**Finally, calculate the share price.**Calculate the present value of the stock using the formula.

## FAQ

**What is a Share Price Calculator?**

A Share Price Calculator is a tool that helps investors determine the current market value of a company’s shares. It typically requires inputs such as the total market capitalization and the number of outstanding shares to calculate the price per share.

**How do you calculate the market capitalization of a company?**

The market capitalization of a company is calculated by multiplying the current share price by the total number of outstanding shares. This figure represents the total market value of a company’s equity.

**Why is it important to know the share price of a company?**

Knowing the share price of a company is important for investors as it helps them make informed decisions about buying or selling shares. It also indicates the company’s market value and can be used to compare the financial health and size of different companies.